CAMPBELL NELSON MCSKIMMING v. SPRIDE LTD AND OTHERS

CAMPBELL NELSON MCSKIMMING v. SPRIDE LTD AND OTHERS

Service on each defendant was proven under Companies Ordinance s.827 and no acknowledgements or defenses were filed; the pleaded facts — recent shell companies with low paid up capital, common Mainland director addresses, transfers received within close temporal proximity under the same pretext — were therefore deemed admitted and sufficed to establish on the pleadings a conspiracy to defraud; accordingly default judgment was entered against each defendant individually and jointly and severally, declaratory and proprietary relief was granted and costs were awarded.

Citation
[2019] HKDC 1301
Parties
Plaintiff: MICHAEL JOHN UREN; Plaintiff: CAMPBELL NELSON MCSKIMMING; Defendant: GCHAIN LIMITED; Defendant: HORUDA TRADE LIMITED; Defendant: WANTOP TRADE HK LIMITED; Defendant: HK ANSHAN TRADE LIMITED; Defendant: PSA TRADE LIMITED; Defendant: HK WENXIANQI TRADE CO, LIMITED; Defendant: HK FUQI TRADE LIMITED; Defendant: SPRIDE LIMITED; Defendant: GRATC TRADE LIMITED
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
26 September 2019
Case Number
DCCJ1988/2019
Procedural Posture
Civil Fraud Claim; Default Judgment Applications Under District Court Rules / Application Under Order 19 Rule 7 for Default Judgment; Judgment Entered on Summons
Outcome
Default judgment granted in favour of each plaintiff against the named defendants; judgment entered individually and jointly and severally; declaratory and proprietary relief granted to secure plaintiffs' proprietary claims; costs awarded.
Legal Topics
Default Judgment, Service of Process, Conspiracy to Defraud, Constructive Trust, Proprietary Remedies, Joint and Several Liability, Pleadings Deemed Admitted
Source Language
EN
Civil Procedure Tort Commercial Fraud Company Law Equity and Trusts Property Default Judgment Service of Process +5 more

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Parties

MICHAEL JOHN UREN

Plaintiff

CAMPBELL NELSON MCSKIMMING

Plaintiff

GCHAIN LIMITED

Defendant

HORUDA TRADE LIMITED

Defendant

WANTOP TRADE HK LIMITED

Defendant

HK ANSHAN TRADE LIMITED

Defendant

PSA TRADE LIMITED

Defendant

HK WENXIANQI TRADE CO, LIMITED

Defendant

HK FUQI TRADE LIMITED

Defendant

SPRIDE LIMITED

Defendant

GRATC TRADE LIMITED

Defendant

Procedural Posture

Civil Fraud Claim; Default Judgment Applications Under District Court Rules / Application Under Order 19 Rule 7 for Default Judgment; Judgment Entered on Summons

Legal Issues

  1. 1 Whether service on defendants was proper and effective
  2. 2 Whether plaintiffs established ownership/proprietary claims sufficient for declaratory relief
  3. 3 Whether the tort of conspiracy to defraud was made out on the pleadings

Ratio Decidendi

Service on each defendant was proven under Companies Ordinance s.827 and no acknowledgements or defenses were filed; the pleaded facts — recent shell companies with low paid up capital, common Mainland director addresses, transfers received within close temporal proximity under the same pretext — were therefore deemed admitted and sufficed to establish on the pleadings a conspiracy to defraud; accordingly default judgment was entered against each defendant individually and jointly and severally, declaratory and proprietary relief was granted and costs were awarded.

Court Disposition

Default judgment granted in favour of each plaintiff against the named defendants; judgment entered individually and jointly and severally; declaratory and proprietary relief granted to secure plaintiffs' proprietary claims; costs awarded.

Orders

  • Judgment entered against each defendant in the sums stated in the draft orders prepared by the plaintiffs' solicitors as amended in court
  • Declaratory relief and proprietary remedies granted to secure the plaintiffs' proprietary claims (including constructive trust as pleaded)